ST. LOUIS – A luxury car dealer for professional athletes, executives and businesses cannot escape a lawsuit over allegations it fraudulently misrepresented the condition of a 2013 Rolls Royce Phantom Coupe when it sold it to a buyer of high-end, luxury vehicles.
U.S. Magistrate Judge Patricia L. Cohen of the Eastern District of Missouri denied Pro Motorsports motion to dismiss St. Louis Motorsports' lawsuit on Sept. 24.
St. Louis Motorsports alleges that Pro Motorsports provided assurance that the Phantom was in perfect and "like new" condition when it re-purchased the vehicle in 2016 for $250,000, the ruling states. St. Louis Motorsports also claims that Pro Motorsports provided it with a March 2016 CarFax report indicating no accidents or damage to the vehicle, states the court order denying Pro Motorsports' motion to dismiss.
However, in April 2017, St. Louis Motorsports claims it obtained a new CarFax history report that revealed that in July 2015 the Phantom sustained extensive damage to its undercarriage.
The plaintiff claims it now has a vehicle that is worth substantially less than what it paid for it in March 2016 and that it has been unable to sell the Phantom.
Pro Motorsports had sought dismissal on the ground that the economic loss doctrine bars recovery for economic losses "that are contractual in nature," the opinion states. In response, St. Louis Motorsports argued that it did not allege the existence of any sales agreement or contract and further that its claims arose from fraud and negligent misrepresentations that “took place prior to and independent of any contractual relationship," the ruling states.
"For purposes of this motion to dismiss, the pleadings do not establish that the alleged misrepresentations relating to the Phantom were in fact contractual terms," Cohen wrote.
"Accepting the presented facts as true and construing all inferences in STL Motorcars’ favor, STL Motorcars stated plausible claims for relief under theories of fraud and negligent misrepresentation," the motion states.